F. Scott Fitzgerald once said there are no second acts in American lives. However, after having spent 20 years in the IT industry, serving in various roles from system administration to network engineer (10 of which have been in education), I’ve recently decided that my second act should be as a freelance writer covering the investor's view of the technology industry. My background in engineering gave me what I consider strong analytical skills. My 15 years of trading and investing gives me the experience to assess equities and appraise their value. I am a Warren Buffett disciple that bases investment decisions on the quality of a company's management, its growth prospects, return on equity and price-to-earnings ratio. I employ conservative strategies to increase capital while also keeping a watchful eye on macro-economic events to mitigate downside risk.

Why Apple Should Hang-up On The iPhone, iWear Is Next

Aside from some end-of-year tax selling and concerns regarding the fiscal cliff, shares of Apple took a brutal beating towards the end of 2012. The reason – there is a broad belief that the company no longer knows how to innovate. But it’s not true. Instead, what has hurt Apple has been the complete opposite.

The company’s 6-month refresh cycle and avalanche of products seems to have backfired – allowing rivals such as Google and Samsung to steal market share. Apple’s “misdirection” with its disappointing map app didn’t help the situation either. For this, CEO Tim Cook offered an apology.

Consequently, Apple now finds itself in an unfamiliar territory – having to prove itself. Aside from whether or not the company still deserves its status as a market darling, investors want to know what’s next? Apple has the answer – it’s just not saying.

However, for the company to truly move forward as a tech power, Apple should hang-up on the iPhone after one more iteration – presumably the iPhone 6. You might disagree. Granted, the phone is still selling well. However, aside from a different chip and larger screen, the change from the 4S to iPhone 5 was not that significant.

Also, what can Apple add to the iPhone 6 or “5S” that would be appreciably better than the current version? In other words, I don’t think the company wants to go down this line – feeling pressured to excite the Street with each new iteration, especially since margins are beginning to decline. Besides, where will it lead – to the iPhone 10? And then what?

Also, for quite some time, the company has hinted on wearable technology. “It’s time” for the iWatch or its iWear line of devices. This is an area in which Google has already shown interest. And for Apple, this will be the answer to that chronic “what’s next” question. And the company will finally be able to put to rest that other annoying question – can it still innovate?

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Your blog is a good reason why paid content is needed. Too many opinions. Not enough facts.

You believe that the phone is dead and that soon everyone will be wearing their computers. At least you got the computer part right and that Apple is a computer company. The iPhone is not a phone. It is a pocket computer. Look at the people that make smartphones that are not called iPhone. They are handset makers using someone else’s operating system.

Apple does one thing better than anyone (including Google, and that’s because they are just an ad agency pumping out free apps in exchange for your personal data). Apple knows how to miniaturize. The iPhone 5 is an amazing piece of tech in that it’s thinner and lighter yet more powerful. Get it?

It is inevitable that Apple will have a computer that you wear on your wrist, or even tuck behind your ear. Eyeglasses that display ads as you walk down the street is not only a gimmick, but is as dangerous as texting while you drive.

But to predict the pocket computer should end in 2013 is so funny that it gave you a place in the iPhone Death Watch.

Terry, I never said that the phone was dead. I’m suggesting that there has not been much difference from one iteration to the next. The phone will always be a phone. But it’s not Apple’s next great source of revenue.

Richard, your article is therefore even more useless. Up until 2001, Apple’s revenue was 100% computers. Then it was 50% music players and 50% computers. Then it was 60% iPhone and 40% computers. But soon the iPhone will be in the pocket computer category which has yet to be recognized.

The phone today is just an app. The iPhone is a pocket computer. Do you really think that no one will want that kind of power in their pocket beyond 2013?

Apple’s next great source of revenue is the tablet. Have you even heard of the iPad?

Again to think that Apple should discard the pocket computer is absurd.

Where did I say “discard?” You have to realize that at some point booming sales doesn’t always equate to booming profits. Apple will have to look to higher margin areas. The iPhone is selling well, but saturation exists and the device is not immune to margin pressure, which has already started. It doesn’t matter how much you love it.

What part of “pocket computer” don’t you understand? And what “margin pressure”? Apple’s current “margin pressure” is due to retooling of the whole new line of products that Apple just released at the end of the year. This too shall pass.

As far as “saturation”. Apple has only 10% of the PC market (and that is growing) and as soon as the iPad is recognized as a computer, will make Apple the largest computer maker in the world. The iPad is replacing PC’s routinely.

Oh, by the way, I’m not a fan. I’m an investor. http://finance.fortune.cnn.com/2012/12/06/apple-stock-investing/

Terry, I am very familiar with every point that you have made. But with respect, please take time to read everything that I have written about Apple here on Forbes as well as other sources. You will see that you are preaching to the choir on your bullishness. I’m also long AAPL and I have been for 4 years.

I’m not commenting on your previous comments nor doubting that you are an AAPL investor. I am commenting on your suggestion that Apple should “hang up on the iPhone”. In fact with you being an AAPL investor and even thinking that Apple should do away with the iPhone makes you a person trying to make more money on “hits” than on your returns.

Market share is not Apple’s priority. If it was they would introduce a barrage of cheap low margin products. Once price becomes a feature, the brand becomes a commodity. If you think Samsung is innovating by making cheap products that nobody even accesses the internet with (not by function, but by the fact these people don’t own data plans), then you are not really understanding technology.

Your suggestion that “iWear” is in the near future of Apple’s future is about five years too early. The pocket computer known as the iPhone will be here for several years.

Much longer than the iPhone 6. In fact I believe that the iPhone will be re-branded eventually as iPod (or something similar). The iPhone brand is too powerful to be ignored and the only other brand that can replace it is iPod. After all, the iPod touch is an iPhone without cellular access.

What happens to the iPhone once Apple gives cellular access to the iPod touch?

Kevin and Richard in part you BOTH epitomize what is happening in this world. 1. If a WATCH will get you wealth/social status. YOU live in a world lack of basic HUMAN interaction. And in a very shallow pool of self worth. Sad that your efforts are not to better yourself as a human and those around you. You might as well create designer viruses.

2. Richard, If you post your words without research as to facts or genuine concern for the truth. You lend yourself to critism. Post a link to a REAL book or university study and immerse yourself in the light of reality. Not your self-induced alternate truth. This is to the contratary to any ACTUAL real trusted body of work and you substantiate it in your own words.

Move up and be positive and active additions to society. It’ll serve the world and yourselves better in the long run. Hey there goes Kevin…Yeah he owns a really cool watch! And he’s talking to Richard who is the crazy, old coot that thinks the guys in the black suits over there are there because of his inaccurate blog of truths.

Use the brain pan to think out a new way to travel or how if the ocean and airstream is actually sucking polution to the bottom of the sea. Is there REALLY a damaging warming cycle happening or is the world a large living organism that takes care of itself and we really need to dig in and live with it instead of bouncing around with incomplete blogs and cool watches?

I hope I meet “youse” sometime so you can critique my miserable existance and help me become a more complete human and increase my productivity in society.

Anon, you’ve got me pegged all wrong. I don’t think I’ve ever made any claims regarding social status or how a watch matters in that sense. My article is about “the next big thing” for Apple. Unfortunately, you have made some assumptions without truly understanding the context. But thanks for the comment.